Word-diffs are great for prose; line-based diffs are completely opaque for editing. If you've ever looked at a lot of copyediting in a line-based diff, you have no idea what actually happened. Look at some edits on Wikipedia and imagine trying to view them in a default git log... Fortunately, you can use `diff --color-words` or a tool like `wdiff` to get better diffs. (An example: http://www.gwern.net/docs/2002-radiance#diff )
I do not speak for GitHub, but anonymous sources inform me that the feature only works with prose formats that have a built-in renderer. So basically, if you can preview the file, you can get a rendered diff for it.
https://github.com/munificent/game-programming-patterns/comm...
[1]: http://gameprogrammingpatterns.com/